Charles Schwab CEO Walt Bettinger is retiring from his position on the finish of December after 16 years main the brokerage agency, the corporate introduced Tuesday.
Bettinger will likely be changed on Jan. 1, 2025, by Charles Schwab President Rick Wurster. Bettinger will stay because the co-chair of Schwab’s board.
Charles Schwab, 5 years
In an announcement, Bettinger cited his sixty fifth birthday subsequent yr as a motive to step apart and praised the selection of Wurster.
“The Schwab Board’s considerate and disciplined strategy to succession planning helps make this transition easy. Rick Wurster and I’ve labored collectively each day for greater than eight years. I’ve full confidence in his management, and I’m thrilled that the Schwab Board of Administrators has chosen him as my successor,” the assertion mentioned.
In an interview on CNBC’s “Squawk Field,” Wurster indicated that there wouldn’t be any quick change in technique with the CEO handoff.
“I do not assume there will likely be a transition within the sense that we will proceed what we have been doing, which is ship for our shoppers and delight them,” Wurster mentioned.
Since Bettinger took over in 2008, the corporate’s consumer belongings have grown to $9.74 trillion from $1.14 trillion, and consumer brokerage accounts have grown to greater than 43 million from fewer than 10 million. This progress is due partially to Schwab’s acquisition of TD Ameritrade, which closed in 2020.
Bettinger mentioned on “Squawk Field” that the mixing of Ameritrade was accomplished earlier this yr and was another excuse that he thought this was a great time to step except for the CEO position.
Schwab’s inventory has gone up roughly 150% throughout Bettinger’s tenure, which started in the midst of the monetary disaster, but it surely has underperformed the broader market over the previous two years.
“I usually say that not many CEOs halve their firm’s inventory worth within the first 90 days, however that was just about what I walked into within the monetary disaster,” Bettinger mentioned on “Squawk Field.”
Shares of Schwab fell 1.4% Tuesday because the broader inventory market declined.
